Question: Thompson Industrial Supply had the following balances as of December

Thompson Industrial Supply had the following balances as of December 31, 2012:

Total Current Assets............................................................................................ $ 90,000
Total Long-Term Assets...................................................................................... 330,000
Total Current Liabilities....................................................................................... 54,000
Total Long-Term Liabilities ................................................................................. 240,000
Total Stockholders’ Equity .................................................................................. 126,000
Earnings Before Interest and Taxes..................................................................... 37,600
Interest Expense ................................................................................................. 23,200
Income Tax Expense........................................................................................... 5,700
Net Income ......................................................................................................... 8,700

Requirement
1. Calculate Thompson Industrial Supply’s debt ratio as of December 31 , 2012.
2. Calculate Thompson Industrial Supply’s interest coverage ratio for 2012. Round your answer to two decimal places.


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  • CreatedApril 29, 2014
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